Energy School

Understanding a new energy world

What is Demand Response and how it works?

The energy world is experiencing profound changes, both utilities and system operators are facing new challenges: balancing intermittent generation, integration of decentralized power generation at local level, covering peak demand… These new drivers make balancing supply and demand more difficult and costly than it used to be.
End-users flexibility in electricity consumption usually called “Demand Response” is a cost-effective solution to meet these new challenges.

End-users become actor of smart energy management by adjusting their electricity consumption:

By developing and/or participating in Demand Response programs:
• End-users reduce their electricity costs.
• Utilities provide new services to their client while optimizing use of generation assets.
• Policy makers contribute to a greener society: Demand Response is an environmentally friendly solution, avoiding use of back up power plants (thermal power plants) and facilitating the integration of renewables.

The benefits of Demand Response for Utilities

Many utilities have placed smart grid initiatives at the center of their development strategy.

In 2014, Energy Pool and its partners (CEA, INES, Schneider Electric) tested new Demand Response programs on a global pool of 100 MW of DR capacity and 72 MW of renewable energy (wind & solar).
EnR-Pool is a project supported by the French environment and energy management agency as part of the smart electricity grids project in the investments for the future programme.